•Pitches $92b yearly transaction tax revenue potential to govt
The Virtual Asset Service Providers Association (VASPA) has unveiled a new policy framework aimed at stabilising the naira and integrating Nigeria’s rapidly growing virtual asset market into the formal economy, marking a significant shift in the country’s approach to digital finance.
‎
The framework, known as Project Green-White-Green, proposes a dynamic foreign exchange (FX) alignment model that links crypto trading spreads to the Nigerian Autonomous Foreign Exchange Market (NAFEM) rates to reduce volatility and curb distortions in the foreign exchange market.
‎
The initiative comes after years of strained relations between regulators and virtual asset operators, with the authorities imposing restrictions on banking channels linked to cryptocurrency transactions over concerns about financial stability and security risks.
‎ ‎
VASPA said the new approach moves away from attempts to suppress the market and instead seeks to align it with national economic priorities, particularly at a time when currency volatility remains a major concern for Nigerians.
‎
Executive Chair of VASPA, Franklin Peters, said the project represented a deliberate effort by industry stakeholders to reposition the sector as a driver of economic growth rather than a regulatory burden.
‎
He said the framework would provide a structured pathway for operators by addressing long-standing regulatory bottlenecks involving the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN) and the Corporate Affairs Commission (CAC), which have made compliance difficult for many firms.
‎
According to him, the proposal would also enhance transparency and security through mandatory identity verification tied to the National Identity Management Commission (NIMC), ensuring that participants in the ecosystem are traceable and accountable.
‎
He said the plan included provisions to boost government revenue, revealing that more than $92 billion in crypto transactions recorded between July 2024 and June 2025 generated little or no tax income due to the absence of proper mechanisms.
‎
To address this, the framework recommends an automated system for collecting value-added tax and capital gains tax at the point of transaction, which it said could transform the sector into a sustainable source of revenue.
‎
Project Manager, VASPA, Favour Uche, described the document as the result of extensive legal, technical and economic work designed to align industry innovation with national interests.
‎
She said the association was preparing to present the framework to key government institutions as part of efforts to secure regulatory backing and begin implementation.
‎
As part of its transition strategy, the proposal includes a Safe Harbour Pilot that would allow operators to regularise their activities without immediate sanctions, as well as a 24-month roadmap to integrate offshore exchanges into Nigeria’s regulatory system.
‎
VASPA maintained that the project signals a broader shift in policy direction, stressing that virtual should be treated as a strategic component of Nigeria’s financial system rather than a peripheral concern.